MONTPELIER – Gov. Peter Shumlin's administration has been able to find about $2 million in budget savings by working with the state employees union, according to a memo Thursday, but it's not enough.

The administration seeks about $10.8 million in labor savings as part of an effort to close the gap between next fiscal year's projected expenses and revenues.

The Vermont State Employees Association has not been interested in reopening its labor contract, and Administration Secretary Justin Johnson has said the state may ultimately face several hundred layoffs.

The final number on layoffs, Johnson said in an interview, will come after the House and Senate finish their budget process this year.

In a letter to VSEA President Shelley Martin, the secretary wrote that the $2 million savings would come from exempt employees' wages and benefits and designated managers' benefits as well as decreased use of temporary employees.

Johnson outlined several proposals for further cuts, including a six-month delay in the 2.5 percent cost of living adjustment and unpaid furlough days.